‘Home prices in A’bad stagnant for a year’

There has been no rise in the prices of residential real estates in Ahmedabad during the last one year,according to the latest data from the quarterly report of Cushman and Wakefield (C&W),a global consultant.

There has been no rise in the prices of residential real estates in Ahmedabad during the last one year,according to the latest data from the quarterly report of Cushman and Wakefield (C&W),a global consultant.

The cost of homes in Ahmedabad were jacked up artificially during the last few years. There are no buyers at the present rates,causing the markets to stagnate, said Pravin Bavadiya,president of Ahmedabad Realtors Association,a body of consultants and brokers.

Despite incurring considerable increase in input costs,developers in the city have not been able to transfer the additional burden to the buyers as they do not want to add to the poor sentiments in the market,say experts.

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Meanwhile,housing markets in other cities have outperformed Ahmedabad during the last one year. The prices of homes in Chennai have shot up by a maximum of 40% which is the highest rise recorded in the country.

Similar is the rise in prices of homes in Bangalore (30%),Delhi-NCR (29%),Kolkata (24%) and Mumbai (21%) in the last one year.

With transaction activity expected to remain low in Ahmedabad,capital and rental values are expected to remain stable for the next two-three quarters, states the C&W report on Ahmedabad,which,like Pune,has the maximum number of investors investing in real-estate space.

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